The Director-General of the National Pension Commission (PenCom), Omolola Oloworaran, says the Commission’s N5.51 trillion pension fund investment is poised to significantly boost Nigeria’s real sector development.
PenCom disclosed this in a statement issued in Abuja on Tuesday, following a strategic meeting with a delegation from the International Monetary Fund (IMF) focused on developments in the pension industry and the broader financial sector.
Oloworaran said the funds have been channelled into key economic growth areas including infrastructure, private equity vehicles, real estate, and subnational infrastructure initiatives.
She noted that the pension industry plays a critical role in providing long-term financing for the economy, with the Net Asset Value (NAV) of the industry rising by 22.65%—from N18.36 trillion in December 2023 to N22.51 trillion as of December 2024. The growth, she explained, was driven by increased contributions and strong investment returns.
However, the PenCom boss highlighted a major challenge: the limited availability of investment-grade financial instruments. Currently, only 86 instruments meet the Commission’s minimum quality requirements, including liquidity and free float criteria.
Despite regulatory provisions aimed at expanding investment options, Oloworaran said PenCom will intensify its collaboration with capital market operators to increase the pool of eligible instruments. She also emphasized the Commission’s commitment to diversifying portfolios by increasing exposure to alternative assets and boosting long-term returns.
“The Commission remains focused on strengthening the investment portfolio and ensuring the long-term sustainability of the Contributory Pension Scheme (CPS),” she said.
Oloworaran added that PenCom continues to work closely with regulators and industry stakeholders—including the Securities and Exchange Commission (SEC), the Debt Management Office (DMO), and the Pension Fund Operators Association of Nigeria (PenOp)—to foster innovation and broaden asset classes available for pension investment.
Speaking during the meeting, IMF Senior Financial Sector Expert, Mr. Jose Luna, commended PenCom for its regulatory diligence and efforts in expanding investment opportunities within the pension industry. He praised the Commission’s commitment to sustainable growth and its role in driving financial sector development.
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